IRRR Direct Loans, Loan Guaranties, Equity Investment Programs
Financing
Services: Incentive and Financial Resource Programs, Loan Packaging, Loan Providers (Non-traditional)
Contact: Scott Sundvall, Development
Address: 4216 Hwy 53 S , Eveleth, MN 55734-0441
Phone: (218)735-3015
Email: Scott.sundvall@state.mn.us
Website: https://mn.gov/irrrb/
Description:The purpose of the Direct Loan, Loan Guaranties, and Equity Investment programs is to increase, expand, and diversify the area’s economic base by assisting private investment. Start-up businesses and existing businesses are eligible for assistance.
Primary consideration will be given to the following types of businesses:
- Manufacturing/Assembly
- Projects which attract expenditures from outside the TAA
- Technologically-innovative projects
Allowable Use of Proceeds
Land and building acquisition, new building construction, building renovation, land improvements, inventory purchase, purchase of machinery and equipment.
However, if a project involves construction, the agency will participate only in permanent term financing. Interim construction lending must be financed via another lender. Program financing cannot be used for debt refinancing or acquisition of an existing business.
Direct Loans
IRRRB loans its funds directly to the eligible business. Collateral requirements are negotiable, but typically the agency will require a first lien on the financed assets and/or other assets. The interest rate will be set at one percentage point less than the full-faith and credit obligations of the United States Government of comparable term to the loan, rounded up to the nearest one-half percent. The minimum rate charged on direct loans is three (3) percent. The interest rate is determined at the time the loan is approved by IRRRB.
Loan Guaranties
IRRRB will consider a limited guaranty on a loan to an eligible business that is originated by a commercial bank and/or other lender. Terms and conditions of any guaranty will be negotiated between the lender and the agency.
Equity Investment
IRRRB has statutory authority to invest its funds directly into eligible privately owned companies that exhibit extraordinary growth potential. The investment can be in the form of a direct stock purchase or in a convertible debenture. Terms and conditions are negotiable.
Who We Are
The Department of Iron Range Resources and Rehabilitation is a State of Minnesota development agency located in Eveleth, Minnesota. Our mission is to promote and invest in business, community and workforce development for the betterment of northeastern Minnesota.
Iron Range Resources & Rehabilitation provides vital funding, including low or no interest loans, grants and loan guarantees for businesses relocating or expanding in the region. Additionally, a variety of grants are available to local units of government, education institutions, and nonprofits that promote workforce development and sustainable communities.
Who We Serve
The Department of Iron Range Resources & Rehabilitation serves the people of northeastern Minnesota. Whether a CEO, a small business owner or entrepreneur, our business development team is here to assist with business growth and development. Our community development works closely with city leaders, city administrators, township clerks, tribal boards and non-profits to support and assist with growing stable, livable and healthy communities. Industry leaders, school district and college administrators partner with our workforce development team to build and retain a well-trained workforce that meets the needs of existing and emerging industries in our region.
Service Area
Iron Range Resources & Rehabilitation’s service area encompasses 13,000 square miles in northeastern Minnesota; 50 cities, 129 townships, and 15 school districts. See a detailed map and listing of school districts and communities (pdf). The service area of Iron Range Resources & Rehabilitation is defined by Minnesota Statute 273.1341.
